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2011 fiscal year: Dräger registers second record-breaking year in succession | ![]() |
Wednesday, 14. March 2012 09:35 |
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Drägerwerk AG & Co. KGaA / 2011 fiscal year: Dräger registers second record-breaking year in succession . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. * Record-breaking net sales of approximately EUR 2.26 billion * Net profit up 19.3 percent * Growth set to continue Lübeck - 2011 was the second record-breaking year in succession for Drägerwerk AG & Co. KGaA. Adjusted for currency effects, incoming orders rose 7.6 percent to EUR 2,293.2 million (2010: EUR 2,145.5 million). Both divisions experienced particularly strong growth in incoming orders from the Asia / Pacific region, but the rest of Europe and Germany regions also displayed positive development. Adjusted for currency effects, net sales came to EUR 2,255.8 million, up 4.4 percent on the previous year (2010: EUR 2,177.3 million). The Group's earnings before interest and taxes (EBIT) went up 10.9 percent to EUR 213.8 million. The EBIT margin rose to 9.5 percent (2010: 8.9 percent), therefore reaching the upper limit of the bandwidth of 8.0 percent to 9.5 percent, which the Group had forecast in July 2011. Stefan Dräger, Chairman of the Executive Board at Drägerwerk Verwaltungs AG: "I am delighted to be able to state that we achieved such good business results in 2011 while also laying the foundations for our future growth." Medical division In 2011, incoming orders in the medical division rose 6.3 percent (net of currency effects) to EUR 1,518.8 million (2010: EUR 1,441.9 million). Net sales grew 1.8 percent (net of currency effects) to EUR 1,484.5 million (2010: EUR 1,472 million), while EBIT was up 2.8 percent to EUR 191.8 million (2010: EUR 186.6 million). With an EBIT margin of 12.9 percent, 2011's performance was up slightly on the prior-year figure (2010: 12.7 percent). Safety division At the safety division, incoming orders in 2011 came to EUR 805.0 million, a total of 10.3 percent (net of currency effects) higher than the prior-year figure (2010: EUR 731.7 million). Net sales were up 9.7 percent (net of currency effects) to EUR 802.7 million (2010 EUR 733.8 million). EBIT growth was particularly impressive, growing 24.6 percent year-on-year to EUR 76.1 million (2010: EUR 61.0 million). This development enabled Dräger to achieve an EBIT margin of 9.5 percent (2010: 8.3 percent). Net profit rises above average by 19.3 percent In 2011, Drägerwerk AG & Co. KGaA's net profit went up 19.3 percent year-on-year to EUR 125.1 million (2010: EUR 104.8 million). Interest expense fell by 16 percent as the Company had little debt. Both the positive earnings trend and the optimization of the Group structure also contributed to the tax rate dropping to 30.8 percent compared to the previous year (2010: 31.8 percent). The particularly strong earnings growth in Germany played an advantageous role in this development. Proposed reduction in dividends To enable Dräger to shoulder an improved capital structure, the Executive Board will propose at the annual shareholder's meeting on May 4, 2012 that dividends be reduced on a one-off basis to EUR 0.19 per preferred share and EUR 0.13 per common share. Due to sustained macroeconomic uncertainty, Dräger wishes to increase its equity ratio in the medium term to 40 percent of consolidated total assets so the Company has more room for manoeuver on a strategic level. In addition, a reduction in dividends would also represent an opportunity for shareholders to make a contribution to the Company's plans to finance the repurchase of participation certificates to improve the Group's capital structure. Once the Company reaches this equity ratio, 30 percent of Group net profit (less earnings attributable to non-controlling interests) will be paid out in dividends. Until Dräger achieves this equity ratio, the Executive Board intends to pay out 15 percent of the Group's net profit (less earnings attributable to non-controlling interests). In 2011, the Group equity ratio stood at 34.5 percent (2010: 32.2 percent). Buying back participation certificates will reduce the equity ratio in direct proportion to the size of the buyback. Forecast: Growth likely to continue in 2012 Dräger anticipates that it will grow at least as fast as the entire global economy again in 2012 (IMF January 2011 estimate: +3.3 percent). However, research and development and IT costs will, as announced in November 2011, probably rise faster than net sales in 2012. Basing calculations on the stable development of the market, Dräger predicts that it will again produce a group EBIT margin of between 8 percent and 9.5 percent in 2012. This expectation is based on the assumption of a stabilizing economy in Europe, continued economic recovery in North America, sustained market growth in developing countries and stable exchange rates. In the medium term, the new Group sales structure should significantly reduce sales expenses and tap into additional growth potential. Expenses in the medium one-digit million euro range were recognized in the financial statements for fiscal year 2011 for the implementation of the new sales structure. Dräger expects the new sales structure to generate savings of at least one percentage point for relative marketing and sales expenses by the end of 2014. Dräger also plans to continue to grow faster than the market and sustainably achieve a minimum EBIT margin of 10 percent in the medium term. Disclaimer This press release contains statements on the future development of Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to it to date and have been prepared to the best of its knowledge and belief. No guarantee or liability for the occurrence of the future developments and results specified can be assumed in respect of such forward-looking statements. Rather, the future developments and results are dependent on a number of factors. They entail risks and uncertainties beyond the Company's control and are based on assumptions which could prove to be incorrect. Notwithstanding any legal requirements to adjust forecasts, Dräger does not assume any obligation to update the forward-looking statements contained in this report. Please go to Investor Relations / Financial Calendar atwww.draeger.com for information on all important financial dates. 2011's key figures (in EUR millions) +-------------------------------------------------------+-------+-------+------+ | | 2011| 2010|Change| +-------------------------------------------------------+-------+-------+------+ |Group | | | | +-------------------------------------------------------+-------+-------+------+ |Incoming orders |2,145.5|2,293.2| +6.9%| +-------------------------------------------------------+-------+-------+------+ |Net sales |2,177.3|2,255.8| +3.6%| +-------------------------------------------------------+-------+-------+------+ |EBIT | 192.8| 213.8|+10.9%| +-------------------------------------------------------+-------+-------+------+ |EBIT margin | 8.9%| 9.5%| | +-------------------------------------------------------+-------+-------+------+ |Net profit | 104.8| 125.1|+19.3%| +-------------------------------------------------------+-------+-------+------+ |Earnings per preferred share (EUR) | 6.25| 7.35|+17.6%| +-------------------------------------------------------+-------+-------+------+ |Earnings per common share (EUR) | 6.19| 7.29|+17.8%| +-------------------------------------------------------+-------+-------+------+ |Earnings per preferred share in the case of full | | | | |distribution | 4.36| 4.60| +5.5%| +-------------------------------------------------------+-------+-------+------+ |Earnings per common share in the case of full | | | | |distribution | 4.30| 4.54| +5.6%| +-------------------------------------------------------+-------+-------+------+ |DVA | 114.5| 134.6| +17.6| +-------------------------------------------------------+-------+-------+------+ |Employees | 11,291| 11.924| +5.6%| +-------------------------------------------------------+-------+-------+------+ | | | | | +-------------------------------------------------------+-------+-------+------+ |Medical division | | | | +-------------------------------------------------------+-------+-------+------+ |Incoming orders |1,441.9|1,518.8| +5.3%| +-------------------------------------------------------+-------+-------+------+ |Net sales |1,472.0|1,484.5| +0.9%| +-------------------------------------------------------+-------+-------+------+ |EBIT | 186.6| 191.8| +2.8%| +-------------------------------------------------------+-------+-------+------+ |EBIT margin | 12.7%| 12.9%| | +-------------------------------------------------------+-------+-------+------+ | | | | | +-------------------------------------------------------+-------+-------+------+ |Safety division | | | | +-------------------------------------------------------+-------+-------+------+ |Incoming orders | 731.7| 805.0|+10.0%| +-------------------------------------------------------+-------+-------+------+ |Net sales | 733.8| 802.7| +9.4%| +-------------------------------------------------------+-------+-------+------+ |EBIT | 61.0| 76.1|+24.6%| +-------------------------------------------------------+-------+-------+------+ |EBIT margin | 8.3%| 9.5%| | +-------------------------------------------------------+-------+-------+------+ Contact Corporate Communications: Melanie Kamann Tel. +49 451 882-3998 melanie.kamann@draeger.com Investor Relations: Vanina Hoffmann Tel. +49 451 882-2685 vanina.hoffmann@draeger.com Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23542 Lübeck, Germany www.draeger.com --- End of Message --- Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 Lübeck Germany Listed: Freiverkehr in Börse Stuttgart, Prime Standard in Frankfurter Wertpapierbörse, Regulierter Markt in Frankfurter Wertpapierbörse, Regulierter Markt in Bayerische Börse München, Regulierter Markt in Börse Berlin, Regulierter Markt in Hanseatische Wertpapierbörse zu Hamburg, Regulierter Markt in Börse Düsseldorf, Regulierter Markt in Niedersächsische Börse zu Hannover; Press release (PDF): http://hugin.info/135701/R/1593666/501493.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Drägerwerk AG & Co. 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